WHAT DOES 2 J OF OUR PENSION RULES SAY ABOUT "WHO IS AN EMPLOYEE OF LIC ?

Are you Listening ?

During an usual chit-chat with one old of friend of the Editor,  the latter was told that THERE ARE INDEED FIVE CLASSES OF EMPLOYEES IN LIC OF INDIA AND THIS HAS BEEN CLEARLY STATED IN 2J OF OUR PENSION RULES. 

HE CONTENDS THAT APART FROM CLASS 1 , II, III AND IV , PENSIONERS ARE ALSO COME UNDER THE CATEGORY OF THE TERM ËMPLOYEE' " AS DEFINED UNDER THE ABOVE RULE 2J.

WHILE THE SALARY STRUCTURE OF CLASSSES 1 TO IV ARE GETTING REVISED, CLASS V THAT IS PENSIONERS IS NEGLECTED. 

THIS IS CLEAR DISCRIMINATION. 

HE SAID, HE HAS RAISED THIS POINT AND WANTED THE APPELLANTS IN OUR SC CASE TO INCLUDE THIS AS A FORCEFUL PLEA . 

HIS POSITION WAS ACCEPTED BY THE ALL INDIA CONVENTION HELD AT BHOPAL , HE SAYS.

ON A REFERENCE MADE BY THE EDITOR , TO CH.MAHADEVAN, RETD.ED, HE ILLUSTRATES FURTHER;

 You are right.As per Rule 2(j) of LIC Pension Rules 1995,every retiree covered by these rules falls under the definition of ‘employee’.Only the retirees under the Oriental Co. Pension Schemes are excluded.

Our entire premise in our SLPs is when wage revision is done for in-service employees,pensioners should also be provided upgradation of pension as principle of erosion of capital value of salary is equally applicable for pension as DA/DR is only to compensate for increase in the cost of living in the short and long term.Once a period of five years elapses,the capital value of salary/pension which is a financial asset,depreciates hence wage revisions are effected for serving employees.

Also for Chairman & Managing Directors of LIC who have risen to these positions from their service in LIC and who retired after 1/1/1996,Rule 55 B entitles them to pension benefits as per CCS Pension Rules 1972 ,upgradation of pension is provided with implementation of CPC recommendations.

They are covered by Rule 2(j) and thus there is clear violation of Article 14 of the Constitution.

Kind regards.

C H Mahadevan